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U.S.-China trade tensions have slight impact on Massachusetts businesses, analysts say

The rounds of tariffs bouncing between the United States and China have sent shockwaves into trade-sensitive U.S. industries such as manufacturing and agriculture. But Massachusetts has only seen a slight impact from Washington’s trade rift with Beijing, industry analysts told BU News Service. 

U.S.-China trade tensions, though small in magnitude compared to Massachusetts’ economic activity, could still be detrimental to companies that rely heavily on exports, Branner Stewart, a senior research manager at the UMass Donahue Institute, said in an email. 

“On the export side, Massachusetts is a large-scale exporter of intermediate goods and industrial equipment,” Stewart said. “Both could be affected by the tariffs and any slowing of trade with China. On the import side, the price of household goods will go up as retailers are pushed to the limit to absorb the costs without passing them on to consumers.”

The Economic & Public Policy Research group (EPPR) provides unbiased analyses on economic, demographic, workforce, and other public policy issues in Massachusetts, New England, and beyond. As a leading provider of applied economic and public policy research, we help our clients make informed decisions about strategic policy, planning, and investment issues. We produce in-depth studies that help clients build credibility, quantify impacts, gain visibility, educate constituents, prioritize investment, and plan economic development initiatives. More information: http://www.donahue.umassp.edu/business-groups/economic-public-policy-research. 

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